External Business Interest

A subject owns, operates, advises, supports, or materially benefits from an external business whose activities or interests conflict with their responsibilities to the organization.

The external interest may include a private company, consultancy, partnership, directorship, freelance operation, side business, or commercial activity conducted through another person. The business does not need to be a direct competitor. A conflict may also arise where it supplies similar services, seeks access to the same customers, depends on organizational resources, or could benefit from information available through the subject’s role.

The subject may use organizational working time, information, equipment, personnel, customer relationships, intellectual property, or decision-making authority to support the external business. They may also direct opportunities away from the organization, influence supplier or customer decisions, or conceal the extent of their involvement.

Investigators should establish the subject’s ownership, management, advisory, or beneficial relationship with the external business and determine whether it was disclosed. Relevant evidence may include corporate records, professional profiles, business websites, invoices, communications, device activity, customer contact, use of organizational resources, and work performed during contracted hours.

This Sub-section should be distinguished from IF038 – Undisclosed Concurrent Employment. Undisclosed Concurrent Employment captures the infringement of maintaining or performing undisclosed external work where disclosure is required. External Business Interest describes the conflict acting as a motive that may influence a wider range of harmful conduct.